SC cracks down on Amrapali, hints ownership rights may be transferred

New Delhi: The Supreme Court on Wednesday came down hard on Amrapali Group and asked why all of its projects should not be handed over to Noida and Greater Noida authorities.

Noting that the money received by Amrapali Group from home buyers and the money it spent on various projects still leaves a balance amount of Rs 350 crore, Supreme Court said that authorities in Noida and Greater Noida could be given the right over unfinished projects and be allowed to complete and sell these. A bench of Justices Arun Mishra and UU Lalit took note of fund diversion by Amrapali Group and asked it to submit its response.

The top court has also said that the interest and concerns of home buyers have to be given priority and that a total amount of Rs 11,500 crore invested by them in housing projects is a matter of concern because they still have not received possession. "You (Amrapali) are purely a developer. Neither a bank nor you can claim a stake in the construction completed so far. We will first take care of home buyers` interest," SC told Amrapali. "What is your (Amrapali) legal capacity to mortgage the properties to banks? Show the court one clause in the agreement that permits you to create a third party interest. How can you mortgage the construction done out of home buyers` investment?"

(With IANS inputs)